What is a Short Sale?
A Short Sale is a bank's willingness to accept less money than what is owed in order to facilitate a private sale between a willing seller and a willing buyer.
For Example: If a Seller marketing his home owes $275,000.00 to the bank and it is determined that the house is only worth $250,000.00 then they will either need to bring cash to the closing or ensure that there is a short sale negotiated in advance of the closing.
Short Sales are accepted within the discretion of each lender based on the individual circumstances of each homeowner/seller.
Who will qualify for a Short Sale?
Anyone that can demonstrate a financial need for a short sale will be considered. Additionally, anyone that has experienced hardship, including death, divorce, disability may be considered for short sale relief.
The loan officer should move forward with the financing (ordering appraisals, etc.) When buying a property in Short Sale you must be patient, this is a process! You should be informed about the status of the process by the realtors, attorneys, and negotiators.
Do I need a Short Sale Negotiator?
Yes, it is recommended that a short sale negotiator be retained in order to facilitate a smooth short sale. A short sale negotiator has the responsibility of obtaining all short sale documents from the seller and forwarding them to the lender once a written offer is submitted. The negotiator will then follow up with the lender, usually daily, to ensure the file is progressing. The short sale is also expected to communicate with the parties as to the progress to ensure that everyone is on the same page.